New Delhi, Aug 5 : The Competition Commission of India on Tuesday approved the proposal of Dalmia Cement (Bharat) Limited for the acquisition of Jaiprakash Associates Limited (JAL).
The proposed combination envisages 100 per cent acquisition of JAL by Dalmia Cement (Bharat) Limited pursuant to a corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC), according to a CCI statement.
The proposed acquirer is a wholly-owned subsidiary of Dalmia Bharat Limited (DBL), which is the ultimate parent entity of the Dalmia Bharat Group. The group is primarily engaged in the manufacture and sale of cement.
Several other players, including the Adani Group, are also in the fray for acquiring JAL, a company engaged in diverse business activities including real estate, cement, hospitality, engineering, procurement, & construction (EPC) and is currently undergoing a CIRP under the IBC.
Under the provisions of the Insolvency and Bankruptcy Code (IBC), approval from the competition watchdog is required to participate in the bidding process.
A Supreme Court directive mandates obtaining the CCI's approval before the committee of creditors can vote on any resolution plan that qualifies as a combination under the Competition Act.
JAL was admitted into the CIRP following an order of the National Company Law Tribunal after the debt-riddled company defaulted on loan payments due to a consortium of banks led by the State Bank of India. Creditors raised claims to the tune of Rs 57,185 crore as dues from JAL.
The National Asset Reconstruction Company Ltd (NARCL) now leads the list of claimants after acquiring the JAL loans from the banks.
JAL has major real estate projects like Jaypee Greens in Greater Noida, Jaypee Wishtown in Noida on the outskirts of Delhi, and the Jaypee International Sports City near the Jewar International Airport that is nearing completion in the NCR.
JAL also owns four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh. The cement plants, however, are non-operational.
Besides, the company has investments in Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd.
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